Southeastern Properties & Development Company

Southeastern Properties has refused to repair/replace defects in workmanship or materials used during construction our home inside the 1yr warranty. I signed a contract with [redacted] and Southeastern Properties, on March 7, 2014 for a newly constructed home with a 1-year builders warranty. The price of the home and land was $430,000 paid via cash and Construction to VA Loan. I moved into the home on May 14, 2015, 5 months later than the contract stated. On January 4, 2016 I wrote a list of deficiencies to [redacted] that needed to be repaired prior to the 1-year warranty expiration. As of today, September 8, 2016, the work is still outstanding. I have called and emailed [redacted] (Owner of Southeastern Properties), [redacted] (VP of Operations), [redacted] (Senior Superintendent), and [redacted] (Superintendent) over 100 times. A portion of the "punch list" was corrected but there are still four major deficiencies outstanding. Those deficiencies include: leaks in the crawl space resulting in mold, roof damage from improper installation of shingles, a cracked driveway, and a broken bedroom window.Desired SettlementI would like the repairs to be made and the defected materials replaced. If [redacted] and Southeastern Properties are unable or unwilling then I would like to be reimbursed for hiring a third party, licensed contractor, to complete the work. Business Response At no time has Southeastern Properties and Development Company ever refused to correct any legitimate warranty issue at any residence.The homeowner is correct in that he did sign a contract with Southeastern in March of 2014 and that it stated that his home would be completed by January, 2015. However, he fails to mention that this completion date was contingent on Southeastern being able to promptly start construction and that he was not able to secure financing and close on his lot until several months after the contract was signed. He selected a lot in a subdivision that was not yet complete and the plat map had not been recorded. Legally, a lot does not exist until a plat map is recorded and because of this the homeowner was not able close on his loan and lot purchase until late July. This was four and a half months after signing his construction contract. Southeastern did not develop the neighborhood and did not sell the lot to the homeowner; he used his own realtor and our company had no influence over what lot he chose or over when the developer of the subdivision would complete their work. Until a plat map is recorded the county would also not issue health or building permits. The delay in financing and inability to obtain permits meant that Southeastern was not able to break ground on the home until late August, this was many months after our originally scheduled start date. Once construction was under way, the home was completed in substantially the same duration of time as it would have been had we been able to start as originally planned. It is worth noting that we were able to do this despite having several weather delays due to construction being completed in winter rather than in the summer as original planned and our contract also clearly states that weather delays can and will delay the expected completion date of any home.The homeowner did provide a warranty punch list. A representative from Southeastern met them on site and work was arranged to complete every legitimate item on the list. Several items were addressed including a broken door knob, a window that would not stay up when unlocked, a door that needed adjusting, some nail pops, a twisted decking board, a light fixture that needed adjusting and a few areas where caulking needed replacing where the counter backsplash met the wall. There were three issues that the homeowner was informed were not warranty items: a driveway crack, some damaged shingles and high humidity in the crawl space.1. The driveway crack the homeowner is referring to is at the extreme corner of the driveway apron, where it meets the gravel road and is approximately 8 inches in length. The concrete on both sides of the crack are level and the crack does impede the use and functionality of the driveway in any way whatsoever. The crack is so small that the resultant triangle formed by it and the two edges of the driveway apron is less than one square foot. It was most likely caused by a heavy vehicle driving across the extreme edge of the driveway and not by faulty workmanship or materials as there are no other cracks anywhere in the drive. 2. There are several broken and damaged shingles on the roof. This damage appears to have been caused by hail storm or similar weather event. The homeowner was informed that this was not a warranty item because the shingles had been installed correctly and had not failed because of any material defect. All of the fasteners are still in place and several of the missing pieces of shingle appear to have been ripped or torn off by wind. The homeowner was informed that this is part of maintenance that comes with owning any home... their roof was damaged in a storm and needs some repair work. Southeastern offered to complete the work for the homeowner and charge for the labor, but the homeowner rejected that offer.3. The crawlspace of the home has a high level of humidity. There was a vapor barrier installed under the home during the construction process and there are no leaking plumbing pipes, failed foundation drains or standing water in the crawlspace. There was a drip coming from return ductwork at an air handler located under the home that was caused by condensation building up on the outside of the duct, but it caused only a very small amount of water and was itself the result of the high humidity in the crawlspace. The lot the home was constructed on is at the rear of the neighborhood, and is sloped and has a drainage pond at its rear border. All of the water from the neighborhood flows toward this pond and so the soil stays moist and there is a high level of humidity. This was discussed with the homeowner and Southeastern recommended that they install a dehumidifier in the crawlspace to deal with the issue. A dehumidifier was not recommended during construction because the home was built during the winter months and there was no humidity issue at the time.The broken window that the homeowner refers to is not broken glass or sash, but a simple broken spring that causes the top sash of the window to not stay in place when it is unlocked. The spring is covered under the manufacturer's warranty and can be installed in less than five minutes. The customer has been informed several times that the manufacturer has been made aware of the issue and is sending a replacement spring. When it arrives it will be provided to the homeowner.We make every effort to provide the best customer service possible and a large part of this is warranty work. We have addressed every legitimate issue that this homeowner brought to our attention and even completed several cosmetic touch-ups caused by normal use as a courtesy. The three items that have not been addressed are maintenance issues and part of owning any home. If they were caused by a defect in workmanship or materials we would address them, but they are not.Consumer Response What[redacted] stated is simple not factual. I have numerous legal documents and emails readily available to support my complaint. As stated before[redacted] and I signed a contract on 03/07/2014 for Southeastern Properties to build me a home with a completion date of 01/09/2015. No where in our contract does it state the timeline was contingent on[redacted] being able to promptly start construction. I was never informed the construction timeline would be 5 months over schedule and inquired about schedule on numerous different occasions with no clear response from[redacted] or the site supervisor. I paid the earnest money to purchase the land on 03/15/2014.[redacted] stated via email, to the real estate agent for the land, on 04/08/2014 that he "planned to start both the perk and appraisal processes with the bank as soon as he had the plot." On 04/09/2014 the land owner emailed the plat map to[redacted]. One month from signing the contract with[redacted], he was in possession of the plat map. At this point[redacted] handled all correspondence directly with [redacted] of [redacted] and the Attorney [redacted] in order to facilitate the closing. We used Mr. [redacted] and [redacted] on[redacted]'s recommendation because he used both men numerous times before and had a relationship with them. I purchased my land with cash so "securing financing" was not necessary as[redacted] has stated. I moved into my home while it was still under construction on 05/14/2015. Due to the rental I was living in becoming unavailable and a pending deployment I was forced to move in to the unfinished home (2 of the 3 bathrooms were not fully functional, the fireplace was not installed, and the painters were still painting interior rooms and portions of the exterior). The previously mentioned work was completed on 06/15/2015, 5 months behind schedule. I am not complaining about the timeline, although I should. This history is solely to give you, the complaint assessor, some perspective into[redacted]'s habitual dishonesty. The basis of this complaint lies in the fact that[redacted], of Southeastern Properties, is not honoring the one year builders warranty we agreed upon. 1. Cracked Driveway - The driveway was installed on uneven ground. The landscaper did not level the ground properly, which is evident at first glance, and the driveway skirt cracked almost immediately (within 60 days of moving in). A neutral, third party, licensed general contractor came to my home and evaluated the driveway skirt. It was his professional opinion that a crack on a concrete pad, that soon after installation was not normal wear and tear. 2. Damaged Roof - Not a single person from Southeastern Properties has been on my roof since 06/2015 after my home was completed. Not[redacted], not any of his associates, no one. [redacted] stated that it appears the damage was from a storm but never looked into the problem. Over 20 shingles are missing from my roof. The roof was damaged from 1-6 months of moving in. After consulting with a licensed roofer it was his opinion that 20 shingles would not be damaged, if they were installed properly, on a brand new roof inside of a year. I asked[redacted] for the contact information of the roofer who installed my roof to discuss the make/model of the shingles used (for replacements) and/or a possible manufacturers warranty but [redacted] has vehemently refused to give me the contact information.3. Mold in Crawlspace - The crawlspace humidity is not at a higher level of humidity than normal in a NC home. The moisture in the crawlspace is from leaks in the A/C duct and the well water pipe. When this issue was brought to[redacted]s attention no one from Southeastern Properties evaluated the problem. The Southeastern Properties site supervisor stepped just inside the crawlspace and acknowledged the mold was caused by [redacted] using wet floor joists during construction and the standing water from the leaks (defect in workmanship). He never went further than a couple feet inside the crawlspace. My home is not in a "neighborhood". It is on a 6 acre plot with two adjacent homes on 12 and 18 acres respectively.4. Broken Bedroom Window - The broken window is indeed a broken sash which does not allow the window to function properly. The upper sash falls down, when unlocked, which makes the window unable to open. This has been broken since the window was installed. A Southeastern Properties site supervisor informed me that the part was ordered and would be installed when it arrives. I have been waiting for the "spring" to arrive for 7 months now.[redacted] has since stated he will not install the spring because that is a defect in materials used and that does not include labor. As you can see[redacted] does not make every effort to provide the best customer service. I brought the warranty "punch list" items to his attention 8.5 months ago and we still have multiple outstanding deficiencies. These deficiencies have now been arbitrarily dismissed by[redacted] as "normal wear and tear or home maintenance issues" without him ever looking into the problems further. The contract that[redacted] and I agreed upon stated (Article 13 Warranty) "the contractor shall execute an instrument to the owner warranting the project for 1 year against defects in workmanship or materials utilized". After my two plus years dealing with[redacted] I do not believe he possesses the ethical construct to do the right thing and honor his part of the contract. This is why I have submitted the initial complaint and elaborated further after reading[redacted]'s response. Thank you. Final Business Response Southeastern stands behind its initial response with regards to the construction timeline. The information we provided is easy to verify by checking the recording dates at the [redacted] County Register of Deeds office and by reviewing the construction contract we had with this homeowner. The construction contract contains an entire article regarding construction durations. Article Three, on the first page, is titled "Time of Completion." It states: "The approximate commencement date of the project shall be May 1, 2014. The approximate completion date of the project shall be January 9, 2015... " The final plat map for the homeowner's lot was recorded on June 30, 2014. This can easily be verified by checking with the [redacted] County register of deeds office; it is recorded in map book 16, page 313. The homeowner was not able to purchase the lot until July 21, 2014; the deed is recorded in book [redacted] page [redacted]. He did not pay for it with cash, as he stated, it was purchased with a construction loan that was also used to finance the house; this was also recorded on July 21, 2014 in book [redacted] page [redacted] As we stated in our previous response, we were not able to begin construction until late August after the final plate was recorded so that construction permits could be issued. This was approximately four months after our planned start date that is clearly spelled out in the contract. We also could not have started as scheduled because the homeowner was not been able to obtain construction financing until July 21st. Our company also stands behind its initial response with regards to the three maintenance issues. We feel we clearly explained why these items were not covered under our one year warranty. The homeowner has proven time and again that he is willing to be dishonest. Our version of events could easily be verified by visiting the home and looking at the items.